Exhibit 10.2


 


 





Amended
and Restated Employment Agreement


This
Amended and Restated Employment Agreement (the "Agreement") is made and entered into as of the 10 day of December,
2015, by and between Stephen B. Squires (the "Executive") and Quantum Materials Corp., a Nevada corporation (the
"Company") (collectively, the "Parties").


WHEREAS,
the Company desires to employ the Executive on the terms and conditions set forth in this Agreement;


WHEREAS,
the Executive desires to be employed by the Company on the terms and conditions set forth in this Agreement; and


WHEREAS,
the Company and Executive had previously entered into an Employment Agreement dated October 26, 2012 (the “Initial Employment
Agreement”), and


 


WHEREAS,
the Executive and the Company have entered into a separate Restricted Stock Award Agreement, which shall remain in full force
and effect after the Parties execute this Agreement, and which shall survive the termination of this Agreement for any reason,
notwithstanding any other term in this Agreement.


NOW,
THEREFORE, in consideration of the mutual covenants, promises and obligations set forth in this Agreement, and other good and
valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Parties agree as follows:


1.                 
Term of this Agreement. This Agreement shall commence as
of the ___ day of November, 2015, (the "Effective Date") and shall continue, subject to the terms of this Agreement,
until either party terminates Executive’s employment as set forth in this Agreement. This Agreement replaces, amends, and
restates the Initial Employment Agreement between Executive and the Company. There shall be no definite term of employment. Nothing
specified in this Agreement is intended or shall be construed to alter the at-will nature of the employment relationship. The
Executive or the Company may terminate this Agreement and the employment relationship at any time and for any reason (by providing
thirty (30) days’ advanced written notice to the other party). The Executive shall, however, be entitled to receive compensation
upon termination of employment under certain circumstances as set forth below in Section 5.


2.                 
Position and Duties.


2.1             
Position and Responsibilities. During the Employment Term, the Executive shall serve as the Chief Executive Officer of
the Company, reporting to the Board of Directors. In that capacity, the Executive shall (i) be responsible for the operations
and other general management affairs of the Company; (ii) perform any services, duties or responsibilities consistent with the
Executive’s position; and (iii) perform such services, duties and responsibilities, as shall be determined from time-to-time
by the Board of Directors or as may otherwise be required to effectively perform the Executive’s position. The Executive
may from time-to-time be required to travel within the United States and overseas in the performance of the Executive’s
services, duties and responsibilities, and will be obliged to travel to such locations as the Company, the board of directors
(the “Board”), or the performance of the Executive’s services, duties, and responsibilities reasonably require,
with the costs of such travel to be paid by the Company in accordance with the Company’s travel reimbursement policies,
as amended from time to time.


2.2             
Full-Time and Energy Devoted to Executive’s Employment. During the Employment Term, the Executive shall (i) devote
substantially all of the Executive’s business time, attention, skill, and energy to the business of the Company and the
performance of the Executive's services, duties and responsibilities under this Agreement; (ii) use the Executive’s best
efforts, skill and knowledge in the performance of the Executive’s services, duties and responsibilities and to promote
the success of the Company’s business; (iii) serve the Company’s interests faithfully, efficiently and diligently;
(iv) put in whatever time, energy or attention is necessary to accomplish the Executive’s duties and expectations; (v) cooperate
with the reasonable and lawful directives of the Board in the furtherance of the best interests of the Company; and (vi) comply
with the Company’s policies and procedures as well as all applicable laws, rules and regulations.


2.3             
Executive is Not Currently Bound by a Conflicting Agreement. The Executive hereby represents to the Company that the execution
and delivery of this Agreement by the Executive and the performance by the Executive of Executive’s services, duties and
responsibilities under this Agreement does not and shall not constitute a breach of, or otherwise contravene, the terms of any
other non-compete agreement, employment agreement or other agreement or policy to which the Executive is a party or otherwise
bound.






    			 



    	 



    




2.4             
No Engagement in Conflicting Obligations. The Executive shall not engage in any other business, profession or occupation
for compensation or otherwise which would conflict or interfere with the Executive’s performance or ability to perform the
Executive’s services, duties and responsibilities under this Agreement. 


Notwithstanding
the foregoing, the Executive will be permitted to (i) with the prior written consent of the Board (which consent will not
be unreasonably withheld or delayed) act or serve as a director, trustee, committee member or principal of any type of business,
civic or charitable organization as long as such activities are disclosed in writing to the Company's Chief Executive Officer
in accordance with the Company's Employee Handbook, and (ii) purchase or own less than five percent (5%) of the publicly traded
securities of any corporation; provided that, such ownership represents a passive investment and that the Executive is not a controlling
person of, or a member of a group that controls, such corporation; provided further that, the activities described in clauses
(i) and (ii) of this Section 3.4 do not interfere with the performance of the Executive's services, duties and responsibilities
under this Agreement.


 


3.                 
Place of Performance. The principal place of Executive's
employment shall be in San Marcos, TX. Executive may be required to travel on Company business during the Employment Term.


4.                 
Compensation.


4.1             
Base Salary. Until such time as the Company records its first $10,000,000 in revenue (the “Revenue Trigger”),
the Company shall pay the Executive an annual rate of base salary of no less than $225,000.00; after the occurrence of the Revenue
Trigger, the Company shall pay the Executive an annual rate of base salary of no less than $247,500.00; in either case in periodic
installments in accordance with the Company's customary payroll practices, but no less frequently than monthly. The Executive's
annual base salary, as in effect from time to time, shall be referred to in this Agreement as "Base Salary".


4.2             
Annual Bonuses. Executive shall be eligible for an annual bonus based on personal performance and/or Company performance
metrics to be determined by the Company and Executive on an annual basis (“Target Bonus”). Equity Awards. The
Company has previously granted the Executive right to purchase shares of the Company’s common stock (“Option”),
$0.001 par value per share, pursuant to the Company’s 2013 Employee Benefit and Consulting Services Compensation Plan (“Equity
Plan”). All other terms and conditions of such awards shall be governed by the terms and conditions of the Equity Plan and
the applicable Grant of Option agreement.


4.3             
Employee Benefits. During the Employment Term, the Executive shall be entitled to participate in all employee benefit plans,
practices and programs maintained by the Company, as in effect from time to time (collectively, "Employee Benefit Plans"),
on a basis which is no less favorable than is provided to other similarly situated executives of the Company, to the extent consistent
with applicable law and the terms of the applicable Employee Benefit Plans. The Company reserves the right to amend or cancel
any Employee Benefit Plans at any time in its sole discretion, subject to the terms of such Employee Benefit Plan and applicable
law.


4.4             
Vacation. During the Employment Term, the Executive shall be entitled to four weeks of paid vacation days per calendar
year (prorated for partial years) in accordance with the Company's vacation policies, as in effect from time to time. 


4.5             
Business Expenses. The Executive shall be entitled to reimbursement for all reasonable and necessary out-of-pocket business,
entertainment and travel expenses incurred by the Executive in connection with the performance of the Executive's duties hereunder
in accordance with the Company's expense reimbursement policies and procedures.


4.6             
Indemnification. In the event that the Executive is made a party or threatened to be made a party to any action, suit,
or proceeding, whether civil, criminal, administrative or investigative (a "Proceeding"), other than any Proceeding
initiated by the Executive or the Company related to any contest or dispute between the Executive and the Company or any of its
affiliates with respect to this Agreement or the Executive's employment hereunder, by reason of the fact that the Executive is
or was a director or officer of the Company, or any affiliate of the Company, or is or was serving at the request of the Company
as a director, officer, member, employee or agent of another corporation or a partnership, joint venture, trust or other enterprise,
the Executive shall be indemnified and held harmless by the Company to the maximum extent permitted under applicable law from
and against any liabilities, costs, claims and expenses, including all costs and expenses incurred in defense of any Proceeding
(including attorneys' fees). Costs and expenses incurred by the Executive in defense of such Proceeding (including attorneys'
fees) shall be paid by the Company in advance of the final disposition of such litigation upon receipt by the Company of: (i)
a written request for payment; (ii) appropriate documentation evidencing the incurrence, amount and nature of the costs and expenses
for which payment is being sought; and (iii) an undertaking adequate under applicable law made by or on behalf of the Executive
to repay the amounts so paid if it shall ultimately be determined that the Executive is not entitled to be indemnified by the
Company under this Agreement. The Company shall secure and maintain insurance covering its contractual indemnity obligations set
forth herein, and shall separately secure and maintain directors and officers liability insurance coverage pursuant to which Executive
shall be covered as a named or additional assured.






    		2	 



    	 



    

 


4.7             
Clawback Provisions. Notwithstanding any other provisions in this Agreement to the contrary, any incentive-based compensation,
or any other compensation, paid to the Executive pursuant to this Agreement or any other agreement or arrangement with the Company
which is subject to recovery under any law, government regulation or stock exchange listing requirement, will be subject to such
deductions and clawback as may be required to be made pursuant to such law, government regulation or stock exchange listing requirement
(or any policy adopted by the Company pursuant to any such law, government regulation or stock exchange listing requirement).



5.                 
Termination of Employment. The Employment Term and the Executive's
employment hereunder may be terminated by either the Company or the Executive at any time and for any reason; provided that, unless
otherwise provided herein, either party shall be required to give the other party at least thirty (30) days advance written notice
of any termination of the Executive's employment. Upon termination of the Executive's employment during the Employment Term, the
Executive shall be entitled to the compensation and benefits described in this Section 5 and shall have no further rights
to any compensation or any other benefits from the Company or any of its affiliates. 


5.1             
For Cause or Without Good Reason.  


(a)               
The Executive's employment hereunder may be terminated by the Company for Cause or by the Executive without Good Reason. If the
Executive's employment is terminated by the Company for Cause or by the Executive without Good Reason, the Executive shall be
entitled to receive:


		(i)	any
                                         accrued but unpaid Base Salary and accrued but unused vacation, which shall be paid within
                                         one (1) week following the Termination Date (as defined below); 



		(ii)	reimbursement
                                         for unreimbursed business expenses properly incurred by the Executive, which shall be
                                         subject to and paid in accordance with the Company's expense reimbursement policy; and



		(iii)	such
                                         employee benefits (including equity compensation), if any, as to which the Executive
                                         may be entitled under the Company's employee benefit plans as of the Termination Date;
                                         provided that, in no event shall the Executive be entitled to any payments in the nature
                                         of severance or termination payments except as specifically provided herein.



Items
5.1(a)(i) through 5.1(a)(iii) are referred to herein collectively as the "Accrued Amounts".


(b)              
For purposes of this Agreement, "Cause" shall mean:


		(i)	the
                                         Executive's willful and repeated failure to perform his duties (other than any such failure
                                         resulting from incapacity due to physical or mental illness);



		(ii)	the
                                         Executive's willful and repeated failure to comply with any valid and legal directive
                                         of the Board;



		(iii)	the
                                         Executive's intentional engagement in dishonesty, illegal conduct or gross misconduct,
                                         which is, in each case, materially injurious to the Company or its affiliates;



		(iv)	the
                                         Executive's embezzlement, intentional misappropriation or fraud, whether or not related
                                         to the Executive's employment with the Company;



		(v)	the
                                         Executive's conviction of or plea of guilty or nolo contendere to a crime that
                                         constitutes a felony (or state law equivalent) or a crime that constitutes a misdemeanor
                                         involving moral turpitude;



		(vi)	the
                                         Executive's willful and repeated violation of a material policy of the Company;



		(vii)	the
                                         Executive's willful unauthorized disclosure of Confidential Information (as defined below);
                                         or



		(viii)	the
                                         Executive's knowing and intentional material breach of any material obligation under
                                         this Agreement or any other written agreement between the Executive and the Company.



For
purposes of this provision, no act or failure to act on the part of the Executive shall be considered "willful" unless
it is done, or omitted to be done, by the Executive in bad faith or without reasonable belief that the Executive's action or omission
was in the best interests of the Company. Any act, or failure to act, based upon authority given pursuant to a resolution duly
adopted by the Board or upon the advice of counsel for the Company shall be conclusively presumed to be done, or omitted to be
done, by the Executive in good faith and in the best interests of the Company.






    		3	 



    	 



    




In
the event of conduct the Company contends Executive has engaged in conduct described in (i), (ii), (vi), (vii) or (viii) above,
termination of the Executive's employment shall not be deemed to be for Cause unless the Company gives Executive notice of the
specific conduct at issue in writing and a reasonable opportunity to cure same, after which, if the Company contends it remains
uncured, the Company must deliver to the Executive a copy of a resolution duly adopted by the affirmative vote of not less than
a majority of the Board finding in good faith that there is Cause to terminate Executive’s employment.


(c)               
For purposes of this Agreement, "Good Reason" shall mean the occurrence of any of the following, in each case
during the Employment Term without the Executive's written consent:


		(i)	a
                                         material reduction in the Executive's Base Salary;



		(ii)	a
                                         relocation of the Executive's principal place of employment by more than ten (10) miles,
                                         except for required travel on Company business to an extent substantially consistent
                                         with the Executive's business travel obligations as of the date of relocation;



		(iii)	any
                                         material breach by the Company of any material provision of this Agreement or any material
                                         provision of any other agreement between the Executive and the Company;



		(iv)	the
                                         Company's failure to obtain an agreement from any successor to the Company to assume
                                         and agree to perform this Agreement in the same manner and to the same extent that the
                                         Company would be required to perform if no succession had taken place, except where such
                                         assumption occurs by operation of law;



		(v)	a
                                         material adverse change in the Executive's title, authority, duties or responsibilities
                                         (other than temporarily while the Executive is physically or mentally incapacitated or
                                         as required by applicable law); or



		(vi)	a
                                         material adverse change in the reporting structure applicable to the Executive.



The
Executive cannot terminate his employment for Good Reason unless he has provided written notice to the Company of the existence
of the circumstances providing grounds for termination for Good Reason within sixty (60) days of the initial existence of such
grounds and the Company has had at least thirty (30) days from the date on which such notice is provided to cure such circumstances,
if curable. If the Executive does not terminate his employment for Good Reason within one hundred twenty (120) days after the
first occurrence of the applicable grounds, then the Executive will be deemed to have waived his right to terminate for Good Reason
with respect to such grounds.


Notwithstanding
the foregoing, in the event that a Change in Control (as defined below) occurs during the Employment Term, the Executive may terminate
his employment for any reason during the thirty (30) day period following the Change in Control and such termination shall be
deemed to be for Good Reason.


5.2             
Without Cause or for Good Reason. The Employment Term and the Executive's employment hereunder may be terminated by the
Executive for Good Reason or by the Company without Cause. In the event of such termination, the Executive shall be entitled to
receive the Accrued Amounts and subject to the Executive's compliance with Section 6, Section 7, Section 8
and Section 9 of this Agreement and his execution of a release of claims in favor of the Company, its affiliates and their
respective officers and directors in a form provided by the Company (the "Release") and such Release becoming
effective within fifty-two (52) days following the Termination Date (such within fifty-two (52) day period, the "Release
Execution Period"), the Executive shall be entitled to receive the following: 


(a)               
a lump sum payment equal to two times the sum of the Executive's Base Salary and Target Bonus for the year in which the Termination
Date occurs, which shall be paid within seven (7) days following the effective date of the Release; 


(b)              
If the Executive timely and properly elects continuation coverage under the Consolidated Omnibus Reconciliation Act of 1985 ("COBRA"),
the Company shall pay the full premium to insure Executive and his dependents until the earliest of: (i) the eighteen-month anniversary
of the Termination Date; (ii) the date the Executive is no longer eligible to receive COBRA continuation coverage; and (iii) the
date on which the Executive becomes eligible to receive substantially similar coverage from another employer. 


(c)               
To the extent any equity granted to Executive that is subject to time vesting is not already vested as of the Termination Date,
all unvested equity shall immediately vest and all restrictions on the transferability of such equity shall be lifted on the Termination
Date.






    		4	 



    	 



    




5.3             
Death or Disability.  


(a)               
The Executive's employment hereunder shall terminate automatically upon the Executive's death during the Employment Term, and
the Company may terminate the Executive's employment on account of the Executive's Disability. 


(b)              
If the Executive's employment is terminated during the Employment Term on account of the Executive's death or Disability, the
Executive (or the Executive's estate and/or beneficiaries, as the case may be) shall be entitled to receive the Accrued Amounts
and the following:


		(i)	if
                                         before the Revenue Trigger, a lump sum payment equal to two times the sum of the Executive's
                                         Base Salary and Target Bonus for the year in which the Termination Date occurs, and if
                                         after the Revenue Trigger, one times the sum of the Executive's Base Salary and Target
                                         Bonus for the year in which the Termination Date occurs, which in either case shall be
                                         paid within seven (7) days following the Termination Date; 



		(ii)	If
                                         the Executive’s family timely and properly elects continuation coverage under the
                                         Consolidated Omnibus Reconciliation Act of 1985 ("COBRA"), the Company
                                         shall pay the full premium to insure his spouse and dependents until the eighteen-month
                                         anniversary of the Termination Date. 



		(iii)	To
                                         the extent any equity granted to Executive that is subject to time vesting is not already
                                         vested as of the Termination Date, all unvested equity shall immediately vest and all
                                         restrictions on the transferability, subject to SEC Rule 144, of such equity shall be
                                         lifted on the Termination Date. 



 


(c)               
For purposes of this Agreement, Disability shall mean the Executive's inability, due to physical or mental incapacity, to substantially
perform his duties and responsibilities under this Agreement for one hundred eighty (180) days out of any three hundred sixty-five
(365) day period. Any question as to the existence of the Executive's Disability as to which the Executive and the Company cannot
agree shall be determined in writing by a qualified independent physician mutually acceptable to the Executive and the Company.
If the Executive and the Company cannot agree as to a qualified independent physician, each shall appoint such a physician and
those two physicians shall select a third who shall make such determination in writing. The determination of Disability made in
writing to the Company and the Executive shall be final and conclusive for all purposes of this Agreement.


5.4             
Change in Control Termination.  


(a)               
Notwithstanding any other provision contained herein, if the Executive's employment hereunder is terminated by the Executive for
Good Reason or by the Company without Cause (other than on account of the Executive's death or Disability), in each case within
twelve (12) months following a Change in Control, the Executive shall be entitled to receive the Accrued Amounts and subject to
the Executive's compliance with Section 6, Section 7, Section 8 and Section 9 of this Agreement and
his execution of a Release which becomes effective within fifty-two (52) days following the Termination Date, the Executive shall
be entitled to receive a lump sum payment equal to 2.99 times the sum of the Executive's Base Salary and Target Bonus for the
year in which the Termination Date occurs (or if greater, the year immediately preceding the year in which the Change in Control
occurs), which shall be paid within seven (7) days following the effective date of the Release, and to the extent any equity granted
to Executive that is subject to time vesting is not already vested as of the Termination Date, all unvested equity shall immediately
vest and all restrictions on the transferability of such equity shall be lifted on the Termination Date. 


(b)              
If the Executive timely and properly elects continuation coverage under the Consolidated Omnibus Reconciliation Act of 1985 ("COBRA"),
the Company shall pay the full premium to insure Executive and his dependents until the earliest of: (i) the eighteen-month anniversary
of the Termination Date; (ii) the date the Executive is no longer eligible to receive COBRA continuation coverage; and (iii) the
date on which the Executive becomes eligible to receive substantially similar coverage from another employer.


(c)               
For purposes of this Agreement, "Change in Control" shall mean the occurrence of any of the following:


		(i)	one
                                         person (or more than one person acting as a group) acquires ownership of stock of the
                                         Company that, together with the stock held by such person or group, constitutes more
                                         than fifty percent (50%) of the total fair market value or total voting power of the
                                         stock of such corporation; provided that, a Change in Control shall not occur if any
                                         person (or more than one person acting as a group) owns more than fifty percent (50%)
                                         of the total fair market value or total voting power of the Company's stock and acquires
                                         additional stock;



		(ii)	one
                                         person (or more than one person acting as a group) acquires (or has acquired during the
                                         twelve-month period ending on the date of the most recent acquisition) ownership of the
                                         Company's stock possessing twenty-five percent (25%) or more of the total voting power
                                         of the stock of such corporation;



		(iii)	a
                                         majority of the members of the Board are replaced during any twelve-month period by directors
                                         whose appointment or election is not endorsed by a majority of the Board before the date
                                         of appointment or election;



		(iv)	Stephen
                                         Squires no longer holds the position of Chief Executive Officer or ceases to be a Director
                                         of the Company; or



		(v)	the
                                         sale of all or substantially all of the Company's assets.







    		5	 



    	 



    




5.5             
Notice of Termination. Any termination of the Executive's employment hereunder by the Company or by the Executive during
the Employment Term (other than termination pursuant to Section 5.3(a) on account of the Executive's death) shall be communicated
by written notice of termination ("Notice of Termination") to the other party hereto in accordance with Section
26. The Notice of Termination shall specify: 


(a)               
The termination provision of this Agreement relied upon; 


(b)              
To the extent applicable, the facts and circumstances claimed to provide a basis for termination of the Executive's employment
under the provision so indicated; and


(c)               
The applicable Termination Date.


5.6             
Termination Date. The Executive's Termination Date shall be: 


(a)               
If the Executive's employment hereunder terminates on account of the Executive's death, the date of the Executive's death; 


(b)              
If the Executive's employment hereunder is terminated on account of the Executive's Disability, the date that it is determined
that the Executive has a Disability;


(c)               
If the Company terminates the Executive's employment hereunder for Cause, the date the Notice of Termination is delivered to the
Executive;


(d)              
If the Company terminates the Executive's employment hereunder without Cause, the date specified in the Notice of Termination,
which shall be no less than thirty (30) days following the date on which the Notice of Termination is delivered; and


(e)               
If the Executive terminates his employment hereunder with or without Good Reason, the date specified in the Executive's Notice
of Termination, which shall be no less than thirty (30) days following the date on which the Notice of Termination is delivered.


Notwithstanding
anything contained herein, the Termination Date shall not occur until the date on which the Executive incurs a "separation
from service" within the meaning of Section 409A.


5.7             
Resignation of All Other Positions. Upon termination of the Executive's employment hereunder for any reason, the Executive
shall be deemed to have resigned from all positions that the Executive holds as an officer or member of the board of directors
(or a committee thereof) of the Company or any of its affiliates.


5.8                
IRS Section 280G.  


(a)               
If any of the payments or benefits received or to be received by the Executive (including, without limitation, any payment or
benefits received in connection with a Change in Control or the Executive’s termination of employment, whether pursuant
to the terms of this Agreement or any other plan, arrangement or agreement, or otherwise) (all such payments collectively referred
to herein as the “280G Payments”) constitute “parachute payments” within the meaning of Section
280G of the Code and would, but for this Section 5.8, be subject to the excise tax imposed under Section 4999 of the Code (the
“Excise Tax”), then such 280G Payments shall be reduced in a manner determined by the Company (by the minimum
possible amounts) that is consistent with the requirements of Section 409A until no amount payable to the Executive will be subject
to the Excise Tax. If two economically equivalent amounts are subject to reduction but are payable at different times, the amounts
shall be reduced (but not below zero) on a pro rata basis. 


(b)              
All calculations and determinations under this Section 5.8 shall be made by an independent accounting firm or independent tax
counsel appointed by the Company (the “Tax Counsel”) whose determinations shall be conclusive and binding on
the Company and the Executive for all purposes. For purposes of making the calculations and determinations required by this Section
5.8, the Tax Counsel may rely on reasonable, good faith assumptions and approximations concerning the application of Section 280G
and Section 4999 of the Code. The Company and the Executive shall furnish the Tax Counsel with such information and documents
as the Tax Counsel may reasonably request in order to make its determinations under this Section 5.8. The Company shall bear all
costs the Tax Counsel may reasonably incur in connection with its services. 






    		6	 



    	 



    




6.                 
Cooperation. The Parties agree that certain matters in which
the Executive will be involved during the Employment Term may necessitate the Executive's cooperation in the future. Accordingly,
following the termination of the Executive's employment for any reason, to the extent reasonably requested by the Board, the Executive
shall cooperate with the Company in connection with matters arising out of the Executive's service to the Company; provided that,
the Company shall make reasonable efforts to minimize disruption of the Executive's other activities. The Company shall reimburse
the Executive for reasonable expenses incurred in connection with such cooperation and, to the extent that the Executive is required
to spend substantial time on such matters, the Company shall compensate the Executive at an hourly rate.


7.                 
Confidential Information. The Executive understands and acknowledges
that during the Employment Term, he will have access to and learn about Confidential Information, as defined below. 


7.1             
Confidential Information Defined.  


(a)               
Definition. For purposes of this Agreement, "Confidential Information" includes, but is not limited to,
all information not generally known to the public, in spoken, printed, electronic or any other form or medium, relating directly
or indirectly to: business processes, practices, methods, policies, plans, publications, documents, research, operations, services,
strategies, techniques, agreements, contracts, terms of agreements, transactions, potential transactions, negotiations, pending
negotiations, know-how, trade secrets, computer programs, computer software, applications, operating systems, software design,
web design, work-in-process, databases, manuals, records, articles, systems, material, sources of material, supplier information,
vendor information, financial information, results, accounting information, accounting records, legal information, marketing information,
advertising information, pricing information, credit information, design information, payroll information, staffing information,
personnel information, employee lists, supplier lists, vendor lists, developments, reports, internal controls, security procedures,
graphics, drawings, sketches, market studies, sales information, revenue, costs, formulae, notes, communications, algorithms,
product plans, designs, styles, models, ideas, audiovisual programs, inventions, unpublished patent applications, original works
of authorship, discoveries, experimental processes, experimental results, specifications, customer information, customer lists,
client information, client lists, manufacturing information, factory lists, distributor lists, and buyer lists of the Company
or its businesses, or of any other person or entity that has entrusted information to the Company in confidence. 


The
Executive understands that the above list is not exhaustive, and that Confidential Information also includes other information
that is marked or otherwise identified as confidential or proprietary, or that would otherwise appear to a reasonable person to
be confidential or proprietary in the context and circumstances in which the information is known or used.


The
Executive understands and agrees that Confidential Information includes information developed by him in the course of his employment
by the Company as if the Company furnished the same Confidential Information to the Executive in the first instance. Confidential
Information shall not include information that is known to him before joining the Company or generally available to and known
by the public at the time of disclosure to the Executive; provided that, such disclosure is through no direct or indirect fault
of the Executive or person(s) acting on the Executive's behalf.


(b)              
Company Creation and Use of Confidential Information. The Executive understands and acknowledges that the Company has invested,
and continues to invest, substantial time, money and specialized knowledge into developing its resources, creating a customer
base, generating customer and potential customer lists, training its employees, and improving its offerings in the field of information
technology. The Executive understands and acknowledges that as a result of these efforts, the Company has created, and continues
to use and create Confidential Information. This Confidential Information provides the Company with a competitive advantage over
others in the marketplace. 


(c)               
Disclosure and Use Restrictions. The Executive agrees and covenants: (i) to treat all Confidential Information as strictly
confidential; (ii) not to directly or indirectly disclose, publish, communicate or make available Confidential Information, or
allow it to be disclosed, published, communicated or made available, in whole or part, to any entity or person whatsoever (including
other employees of the Company) not having a need to know and authority to know and use the Confidential Information in connection
with the business of the Company and, in any event, not to anyone outside of the direct employ of the Company except as required
in the performance of the Executive's authorized employment duties to the Company or with the prior consent of Chief Executive
Officer acting on behalf of the Company in each instance (and then, such disclosure shall be made only within the limits and to
the extent of such duties or consent); and (iii) not to access or use any Confidential Information, and not to copy any documents,
records, files, media or other resources containing any Confidential Information, or remove any such documents, records, files,
media or other resources from the premises or control of the Company, except as required in the performance of the Executive's
authorized employment duties to the Company or with the prior consent of Chief Executive Officer acting on behalf of the Company
in each instance (and then, such disclosure shall be made only within the limits and to the extent of such duties or consent).
Nothing herein shall be construed to prevent disclosure of Confidential Information as may be required by applicable law or regulation,
or pursuant to the valid order of a court of competent jurisdiction or an authorized government agency, provided that the disclosure
does not exceed the extent of disclosure required by such law, regulation or order. The Executive shall promptly provide written
notice of any such order to Chief Executive Officer.


The
Executive understands and acknowledges that his obligations under this Agreement with regard to any particular Confidential Information
shall commence immediately upon the Executive first having access to such Confidential Information (whether before or after he
begins employment by the Company) and shall continue during and after his employment by the Company until such time as such Confidential
Information has become public knowledge other than as a result of the Executive's breach of this Agreement or breach by those
acting in concert with the Executive or on the Executive's behalf.


8.                 
Restrictive Covenants. 


8.1             
Acknowledgment. The Executive understands that the nature of the Executive's position gives him access to and knowledge
of Confidential Information and places him in a position of trust and confidence with the Company.






    		7	 



    	 



    




The
Executive further understands and acknowledges that the Company's ability to reserve these for the exclusive knowledge and use
of the Company is of great competitive importance and commercial value to the Company, and that improper use or disclosure by
the Executive is likely to result in unfair or unlawful competitive activity.


8.2             
Non-competition. Because of the Company's legitimate business interest as described herein and the good and valuable consideration
offered to the Executive, during the Employment Term and for the two (2) years, to run consecutively, beginning on the last day
of the Executive's employment with the Company, for any reason or no reason and whether employment is terminated at the option
of the Executive or the Company, the Executive agrees and covenants not to engage in Prohibited Activity within the United States
of America.


For
purposes of this Section 8, "Prohibited Activity" is activity in which the Executive contributes his knowledge,
directly or indirectly, in whole or in part, as an employee, employer, owner, operator, manager, advisor, consultant, agent, employee,
partner, director, stockholder, officer, volunteer, intern or any other similar capacity to an entity engaged in the same or similar
business as the Company, i.e. nanotechnology primarily involving quantum dots. Prohibited Activity also includes activity that
may require or inevitably requires disclosure of trade secrets, proprietary information or Confidential Information about the
Company’s quantum dots technology.


Nothing
herein shall prohibit the Executive from purchasing or owning less than five percent (5%) of the publicly traded securities of
any corporation, provided that such ownership represents a passive investment and that the Executive is not a controlling person
of, or a member of a group that controls, such corporation.


This
Section 8 does not, in any way, restrict or impede the Executive from exercising protected rights to the extent that such
rights cannot be waived by agreement or from complying with any applicable law or regulation or a valid order of a court of competent
jurisdiction or an authorized government agency, provided that such compliance does not exceed that required by the law, regulation
or order. The Executive shall promptly provide written notice of any such order to Chief Executive Officer.


8.3             
Non-solicitation of Employees. The Executive agrees and covenants not to directly or indirectly solicit, hire, recruit,
attempt to hire or recruit, or induce the termination of employment of any employee of the Company during two (2) years, to run
consecutively, beginning on the last day of the Executive's employment with the Company.


8.4             
Non-solicitation of Customers. The Executive understands and acknowledges that because of the Executive's experience with
and relationship to the Company, he will have access to and learn about much or all of the Company's customer information. "Customer
Information" includes, but is not limited to, names, phone numbers, addresses, e-mail addresses, order history, order
preferences, chain of command, pricing information and other information identifying facts and circumstances specific to the customer
and relevant to services. 


The
Executive understands and acknowledges that loss of this customer relationship and/or goodwill will cause significant and irreparable
harm.


The
Executive agrees and covenants, during two (2) years, to run consecutively, beginning on the last day of the Executive's employment
with the Company, not to directly or indirectly solicit, contact (including but not limited to e-mail, regular mail, express mail,
telephone, fax, and instant message), attempt to contact or meet with the Company's current customers for purposes of offering
or accepting goods or services similar to or competitive with those offered by the Company.


9.                 
Non-disparagement. The Executive agrees and covenants that
he will not at any time make, publish or communicate to any person or entity or in any public forum any defamatory remarks, comments
or statements concerning the Company or its businesses, or any of its employees, officers, and existing and prospective customers,
suppliers, investors and other associated third Parties. 


This
Section 9 does not, in any way, restrict or impede the Executive from exercising protected rights to the extent that such
rights cannot be waived by agreement or from complying with any applicable law or regulation or a valid order of a court of competent
jurisdiction or an authorized government agency, provided that such compliance does not exceed that required by the law, regulation
or order. The Executive shall promptly provide written notice of any such order to the Chief Executive Officer.


10.             
Acknowledgement. The Executive acknowledges and agrees that
the services to be rendered by him to the Company are of a special and unique character; that the Executive will obtain knowledge
and skill relevant to the Company's industry, methods of doing business and marketing strategies by virtue of the Executive's
employment; and that the restrictive covenants and other terms and conditions of this Agreement are reasonable and reasonably
necessary to protect the legitimate business interest of the Company. 


The
Executive further acknowledges that the amount of his compensation reflects, in part, his obligations and the Company's rights
under Section 7, Section 8 and Section 9 of this Agreement; that he has no expectation of any additional
compensation, royalties or other payment of any kind not otherwise referenced herein in connection herewith; that he will not
be subject to undue hardship by reason of his full compliance with the terms and conditions of Section 7, Section 8
and Section 9 of this Agreement or the Company's enforcement thereof.






    		8	 



    	 



    




 


11.             
Remedies. In the event of a breach or threatened breach by
the Executive of Section 7, Section 8 or Section 9 of this Agreement, the Executive hereby consents and agrees
that the Company shall be entitled to seek, in addition to other available remedies, a temporary or permanent injunction or other
equitable relief against such breach or threatened breach from any court of competent jurisdiction, without the necessity of showing
any actual damages or that money damages would not afford an adequate remedy, and without the necessity of posting any bond or
other security. The aforementioned equitable relief shall be in addition to, not in lieu of, legal remedies, monetary damages
or other available forms of relief.


12.             
Proprietary Rights in Intellectual Property.


12.1         
Work Product. The Executive acknowledges and agrees that all writings, works of authorship, technology, inventions, discoveries,
ideas and other work product of any nature whatsoever, that are created, prepared, produced, authored, edited, amended, conceived
or reduced to practice by the Executive individually or jointly with others during the period of his employment by the Company
and relating in any way to the business or contemplated business, research or development of the Company (regardless of when or
where the Work Product is prepared or whose equipment or other resources is used in preparing the same) and all printed, physical
and electronic copies, all improvements, rights and claims related to the foregoing, and other tangible embodiments thereof (collectively,
"Work Product"), as well as any and all rights in and to copyrights, trade secrets, trademarks (and related goodwill),
mask works, patents and other intellectual property rights therein arising in any jurisdiction throughout the world and all related
rights of priority under international conventions with respect thereto, including all pending and future applications and registrations
therefor, and continuations, divisions, continuations-in-part, reissues, extensions and renewals thereof (collectively, "Intellectual
Property Rights"), shall be the sole and exclusive property of the Company.


12.2         
Definition of “Work Product”. For purposes of this Agreement, Work Product includes, but is not limited to,
Company Group information, including plans, publications, research, strategies, techniques, agreements, documents, contracts,
terms of agreements, negotiations, know-how, computer programs, computer applications, software design, web design, work in process,
databases, manuals, results, developments, reports, graphics, drawings, sketches, market studies, formulae, notes, communications,
algorithms, product plans, product designs, styles, models, audiovisual programs, inventions, unpublished patent applications,
original works of authorship, discoveries, experimental processes, experimental results, specifications, customer information,
client information, customer lists, client lists, manufacturing information, marketing information, advertising information, and
sales information.


12.3         
Work Made for Hire; Assignment. The Executive acknowledges that, by reason of being employed by the Company at the relevant
times, to the extent permitted by law, all of the Work Product consisting of copyrightable subject matter is "work made for
hire" as defined in 17 U.S.C. § 101 and such copyrights are therefore owned by the Company. To the extent that the foregoing
does not apply, the Executive hereby irrevocably assigns to the Company, for no additional consideration, the Executive's entire
right, title and interest in and to all Work Product and Intellectual Property Rights therein, including the right to sue, counterclaim
and recover for all past, present and future infringement, misappropriation or dilution thereof, and all rights corresponding
thereto throughout the world. Nothing contained in this Agreement shall be construed to reduce or limit the Company's rights,
title or interest in any Work Product or Intellectual Property Rights so as to be less in any respect than that the Company would
have had in the absence of this Agreement. 


12.4         
Further Assurances; Power of Attorney. During and after his employment, the Executive agrees to reasonably cooperate with
the Company to (a) apply for, obtain, perfect and transfer to the Company the Work Product as well as an Intellectual Property
Right in the Work Product in any jurisdiction in the world; and (b) maintain, protect and enforce the same, including, without
limitation, executing and delivering to the Company any and all applications, oaths, declarations, affidavits, waivers, assignments
and other documents and instruments as shall be requested by the Company. The Executive hereby irrevocably grants the Company
power of attorney to execute and deliver any such documents on the Executive's behalf in his name and to do all other lawfully
permitted acts to transfer the Work Product to the Company and further the transfer, issuance, prosecution and maintenance of
all Intellectual Property Rights therein, to the full extent permitted by law, if the Executive does not promptly cooperate with
the Company's request (without limiting the rights the Company shall have in such circumstances by operation of law). The power
of attorney is coupled with an interest and shall not be effected by the Executive's subsequent incapacity.


12.5         
No License. The Executive understands that this Agreement does not, and shall not be construed to, grant the Executive
any license or right of any nature with respect to any Work Product or Intellectual Property Rights or any Confidential Information,
materials, software or other tools made available to him by the Company.


13.             
Company Security.


13.1         
Security and Access. The Executive agrees and covenants (a) to comply with all Company security policies and procedures
as in force from time to time including without limitation those regarding computer equipment, telephone systems, voicemail systems,
facilities access, monitoring, key cards, access codes, Company intranet, internet, social media and instant messaging systems,
computer systems, e-mail systems, computer networks, document storage systems, software, data security, encryption, firewalls,
passwords and any and all other Company facilities, IT resources and communication technologies ("Facilities Information
Technology and Access Resources"); (b) not to access or use any Facilities and Information Technology Resources except
as authorized by the Company; and (iii) not to access or use any Facilities and Information Technology Resources in any manner
after the termination of the Executive's employment by the Company, whether termination is voluntary or involuntary. The Executive
agrees to notify the Company promptly in the event he learns of any violation of the foregoing by others, or of any other misappropriation
or unauthorized access, use, reproduction or reverse engineering of, or tampering with any Facilities and Information Technology
Access Resources or other Company property or materials by others. 


13.2         
Exit Obligations. Upon (a) voluntary or involuntary termination of the Executive's employment or (b) the Company's request
at any time during the Executive's employment, the Executive shall (i) provide or return to the Company any and all Company property,
including keys, key cards, access cards, identification cards, security devices, employer credit cards, network access devices,
computers, cell phones, smartphones, PDAs, pagers, fax machines, equipment, speakers, webcams, manuals, reports, files, books,
compilations, work product, e-mail messages, recordings, tapes, disks, thumb drives or other removable information storage devices,
hard drives, negatives and data and all Company documents and materials belonging to the Company and stored in any fashion, including
but not limited to those that constitute or contain any Confidential Information or Work Product, that are in the possession or
control of the Executive, whether they were provided to the Executive by the Company or any of its business associates or created
by the Executive in connection with his employment by the Company; and (ii) delete or destroy all copies of any such documents
and materials not returned to the Company that remain in the Executive's possession or control, including those stored on any
non-Company devices, networks, storage locations and media in the Executive's possession or control.






    		9	 



    	 



    




14.             
Publicity. The Executive hereby irrevocably consents to any
and all uses and displays, by the Company and its agents, representatives and licensees, of the Executive's name, voice, likeness,
image, appearance and biographical information in, on or in connection with any pictures, photographs, audio and video recordings,
digital images, websites, television programs and advertising, other advertising and publicity, sales and marketing brochures,
books, magazines, other publications, CDs, DVDs, tapes and all other printed and electronic forms and media throughout the world,
at any time during or after the period of his employment by the Company, for all legitimate commercial and business purposes of
the Company ("Permitted Uses") without further consent from or royalty, payment or other compensation to the
Executive. The Executive hereby forever waives and releases the Company and its directors, officers, employees and agents from
any and all claims, actions, damages, losses, costs, expenses and liability of any kind, arising under any legal or equitable
theory whatsoever at any time during or after the period of his employment by the Company, arising directly or indirectly from
the Company's and its agents', representatives' and licensees' exercise of their rights in connection with any Permitted Uses.


15.             
Governing Law: Jurisdiction and Venue. This Agreement, for
all purposes, shall be construed in accordance with the laws of Texas without regard to conflicts of law principles. Any action
or proceeding by either of the Parties to enforce this Agreement shall be brought only in a state or federal court located in
the state of Texas, county of Harris. The Parties hereby irrevocably submit to the exclusive jurisdiction of such courts and waive
the defense of inconvenient forum to the maintenance of any such action or proceeding in such venue.


16.             
Deductions and Withholdings. The Company shall have the right
to withhold from any amount payable hereunder any Federal, state and local taxes in order for the Company to satisfy any withholding
tax obligation it may have under any applicable law or regulation.


17.             
IRS Section 409A. This Agreement is intended to comply with
Section 409A or an exemption thereunder and shall be construed and administered in accordance with Section 409A. Notwithstanding
any other provision of this Agreement, payments provided under this Agreement may only be made upon an event and in a manner that
complies with Section 409A or an applicable exemption. Any payments under this Agreement that may be excluded from Section 409A
either as separation pay due to an involuntary separation from service or as a short-term deferral shall be excluded from Section
409A to the maximum extent possible. For purposes of Section 409A, each installment payment provided under this Agreement shall
be treated as a separate payment. Any payments to be made under this Agreement upon a termination of employment shall only be
made upon a "separation from service" under Section 409A. Notwithstanding the foregoing, the Company makes no representations
that the payments and benefits provided under this Agreement comply with Section 409A and in no event shall the Company be liable
for all or any portion of any taxes, penalties, interest or other expenses that may be incurred by the Executive on account of
non-compliance with Section 409A.


Notwithstanding
any other provision of this Agreement, if any payment or benefit provided to the Executive in connection with his termination
of employment is determined to constitute "nonqualified deferred compensation" within the meaning of Section 409A and
the Executive is determined to be a "specified employee" as defined in Section 409A(a)(2)(b)(i), then such payment or
benefit shall not be paid until the first payroll date to occur following the six-month anniversary of the Termination Date (the
"Specified Employee Payment Date"). The aggregate of any payments that would otherwise have been paid before
the Specified Employee Payment Date shall be paid to the Executive in a lump sum on the Specified Employee Payment Date and thereafter,
any remaining payments shall be paid without delay in accordance with their original schedule.


18.             
Entire Agreement. With the exception of Restricted Stock
Award Agreement, and unless specifically provided herein, this Agreement contains all of the understandings and representations
between the Executive and the Company pertaining to the subject matter hereof and supersedes all prior and contemporaneous understandings,
agreements, representations and warranties, both written and oral, with respect to such subject matter. The Parties hereby acknowledge
and agree that the Restricted Stock Award Agreement shall remain in full force and effect notwithstanding the execution of this
Agreement and shall survive the termination of this Agreement. The Parties mutually agree that the Agreement can be specifically
enforced in court and can be cited as evidence in legal proceedings alleging breach of the Agreement. 






    		10	 



    	 



    




19.             
Modification and Waiver. No provision of this Agreement may
be amended or modified unless such amendment or modification is agreed to in writing and signed by the Executive and by Chief
Executive Officer of the Company. No waiver by either of the Parties of any breach by the other party hereto of any condition
or provision of this Agreement to be performed by the other party hereto shall be deemed a waiver of any similar or dissimilar
provision or condition at the same or any prior or subsequent time, nor shall the failure of or delay by either of the Parties
in exercising any right, power or privilege hereunder operate as a waiver thereof to preclude any other or further exercise thereof
or the exercise of any other such right, power or privilege.


20.             
Severability. Should any provision of this Agreement be held
by a court of competent jurisdiction to be enforceable only if modified, or if any portion of this Agreement shall be held as
unenforceable and thus stricken, such holding shall not affect the validity of the remainder of this Agreement, the balance of
which shall continue to be binding upon the Parties with any such modification to become a part hereof and treated as though originally
set forth in this Agreement. 


The
Parties further agree that any such court is expressly authorized to modify any such unenforceable provision of this Agreement
in lieu of severing such unenforceable provision from this Agreement in its entirety, whether by rewriting the offending provision,
deleting any or all of the offending provision, adding additional language to this Agreement or by making such other modifications
as it deems warranted to carry out the intent and agreement of the Parties as embodied herein to the maximum extent permitted
by law.


The
Parties expressly agree that this Agreement as so modified by the court shall be binding upon and enforceable against each of
them. In any event, should one or more of the provisions of this Agreement be held to be invalid, illegal or unenforceable in
any respect, such invalidity, illegality or unenforceability shall not affect any other provisions hereof, and if such provision
or provisions are not modified as provided above, this Agreement shall be construed as if such invalid, illegal or unenforceable
provisions had not been set forth herein.


21.             
Captions. Captions and headings of the sections and paragraphs
of this Agreement are intended solely for convenience and no provision of this Agreement is to be construed by reference to the
caption or heading of any section or paragraph.


22.             
Counterparts. This Agreement may be executed in separate
counterparts, each of which shall be deemed an original, but all of which taken together shall constitute one and the same instrument.


23.             
Tolling. Should the Executive violate any of the terms of
the restrictive covenant obligations articulated herein, the obligation at issue will run from the first date on which the Executive
ceases to be in violation of such obligation.


24.             
Notification to Subsequent Employer. When the Executive's
employment with the Company terminates, the Executive agrees to notify any subsequent employer of the restrictive covenants section
contained in this Agreement. In addition, the Executive authorizes the Company to provide a copy of the restrictive covenants
section of this Agreement to third Parties, including but not limited to, the Executive's subsequent, anticipated or possible
future employer.


25.             
Successors and Assigns. This Agreement is personal to the
Executive and shall not be assigned by the Executive. Any purported assignment by the Executive shall be null and void from the
initial date of the purported assignment. The Company may assign this Agreement to any successor or assign (whether direct or
indirect, by purchase, merger, consolidation or otherwise) to all or substantially all of the business or assets of the Company.
This Agreement shall inure to the benefit of the Company and permitted successors and assigns.






    		11	 



    	 



    

 


26.             
Notice. Notices and all other communications provided for
in this Agreement shall be in writing and shall be delivered personally or sent by registered or certified mail, return receipt
requested, or by overnight carrier to the Parties at the addresses set forth below (or such other addresses as specified by the
Parties by like notice):


If
to the Company:


Quantum
Materials Corp.


3055
Hunter Road


San
Marcos, TX 78666


Attn:
Stephen B. Squires, Chief Executive Officer


 


If
to the Executive:


Stephen
Squires, 16640 FM 1826, Driftwood TEX 78619,


Or
12326 Scott Dr., Kingston OK 73439


 


27.             
Representations of the Executive. The Executive represents
and warrants to the Company that:


27.1         
The Executive's acceptance of employment with the Company and the performance of his duties hereunder will not conflict with or
result in a violation of, a breach of, or a default under any contract, agreement or understanding to which he is a party or is
otherwise bound.


27.2         
The Executive's acceptance of employment with the Company and the performance of his duties hereunder will not violate any non-solicitation,
non-competition or other similar covenant or agreement of a prior employer.


28.             
Survival. Upon the expiration or other termination of this
Agreement, the respective rights and obligations of the Parties hereto shall survive such expiration or other termination to the
extent necessary to carry out the intentions of the Parties under this Agreement.


29.             
Executive’s Acknowledgment of Full Understanding. THE
EXECUTIVE ACKNOWLEDGES AND AGREES THAT HE HAS FULLY READ, UNDERSTANDS AND VOLUNTARILY ENTERS INTO THIS AGREEMENT. THE EXECUTIVE
ACKNOWLEDGES AND AGREES THAT HE HAS HAD AN OPPORTUNITY TO ASK QUESTIONS AND CONSULT WITH AN ATTORNEY OF HIS CHOICE BEFORE SIGNING
THIS AGREEMENT. 


[SIGNATURE
PAGE FOLLOWS]


 



    		12	 



    	 



    




IN
WITNESS WHEREOF, the Parties hereto have executed this Agreement as of the date first above written.


	 	COMPANY:

         

        QUANTUM
        MATERIALS CORP.

         

	 	 

        By:______________________________

        Name:
        Ray Martin

        Title:
        Director, Compensation Committee Chairman

	 	 

         

	 	EXECUTIVE:
	 	 

        ______________________________

        Stephen
        Squires



 


 








    		13